KARACHI: Pakistan’s largest conglomerate Engro Corporation aims to expand into new markets including the Middle East, Central Asia and Africa, the chemical and energy company’s largest investor said on Tuesday.
Samad Dawood, vice chairman of Dawood Hercules, which owns 40% of Engro, told Reuters in a rare interview that the company is not only looking at hydrogen energy but also global liquefied natural gas (LNG) opportunities. He said he is doing so.
He said the company’s expansion plans include looking at communications infrastructure in the Middle East, North Africa and Central Asia, as well as expanding its fertilizer business in Africa.
According to public data, Engro Corporation has a market capitalization on the Pakistan Stock Exchange of 193 billion rupees ($694 million) and assets of 802 billion rupees ($2.9 billion).
The group operates across multiple sectors in Pakistan, including energy, fertilizers, communications and consumer goods.
The company owns 56% of Engro Elengi Terminal Pakistan, Pakistan’s first LNG terminal, which was established in 2015 in the southern city of Karachi. Dutch energy logistics giant Royal Vopac owns the remaining 44%.
The terminal meets 15 percent of Pakistan’s natural gas needs.
Dawood said Engro continues to invest in the energy sector despite divesting coal-based assets and is exploring new avenues for sustainable energy production.
He said the company is in talks with technology providers in the hydrogen energy sector to find ways to use ammonia as an energy transition solution.
Dawood added that Pakistan is far from energy security and there are plenty of opportunities to further invest in the power sector.
Pakistan is transitioning to dependence on LNG after domestic gas supplies declined rapidly as consumption in the industrial and residential sectors increased.
“Dreamer”
Dawood said the global push was inspired by his late brother Shahzada, who died last year during the ill-fated Titan voyage exploring the wreckage of the Titanic. The accident made international headlines when the wreckage of the Titanic sank, killing all five people on board. board.
“He (Shahzada) was more of a dreamer and pushed us to be more international, to develop curiosity and to engage with the outside world,” Dawood said.
The Dawood family also faced a lengthy legal ordeal in Pakistan, where they were accused of receiving illegal favors from the government.
The case, which dragged on for years, finally came to an end last week when the country’s liability watchdog dropped the case altogether. Dawood said the incident has deeply hurt his family and even affected their business and potential investors.
Dawood said the company’s future plans are taking shape. The boards of Engro and Dawood Hercules on Monday approved in principle a restructuring plan to increase capital flexibility.
Dawood said the restructuring would allow it to participate in “the opportunities that the whole economy offers”, adding that the board wanted the flow of capital between the two organizations to be completely seamless.
He said Engro would be able to expand its investment mandate, including exploring opportunities created by multinational companies exiting Pakistan’s difficult markets.
